Copenhagen Stock Exchange: The KFX Index In Connection With The Merger And Demerger Of The Present Group 4 Falck

On 24 February 2004, Group 4 Falck announced that the company had entered into an agreement with Securicor to merge the two companies' security businesses into a new jointly owned company listed on both the London Stock Exchange and the Copenhagen Stock Exchange. Group 4 Falck will at the same time be split in two new companies, Group 4 and Falck, which will both be listed on the Copenhagen Stock Exchange. Group 4 Falck expects the merger and demerger to be implemented in the 3rd quarter of 2004.

If the tender offer submitted by Group 4 Securicor to the shareholders in Group 4 is accepted in respect of at least 90 per cent of the shares and provided that the terms of the tender offer are otherwise met, Group 4 Securicor intends to effect compulsory redemption of the outstanding shares in Group 4 and then have Group 4 delisted from the Copenhagen Stock Exchange.

Provided that the merger and demerger are carried out, Falck will enter the KFX Index, and Group 4's position in the KFX Index will be replaced by Group 4 Securicor. After the implementation of the merger and demerger Falck and Group 4 Securicor will be constituents of the KFX Index.

The weight of Group 4 Securicor in the KFX Index will reflect the number of shares that the company has registered in VP Securities Services as is the case with other foreign shares listed on the Copenhagen Stock Exchange.

Today, the Copenhagen Stock Exchange published new rules regulating admission to the KFX Index, which enters into force on 5 April 2004. The rules regulating the admission of additional shares to the KFX Index in connection with a review are probably going to be applied for the first time in continuation of the merger and demerger of Group 4 Falck, if the merger and demerger are carried out in the 3rd quarter of 2004 as expected by the management of Group 4 Falck.